USD/MXN's next moves are eyed with upcoming US inflation data focusing traders on 16.00, 17.00 levels.
The Mexican Peso loses steam against the US Dollar on Tuesday after refreshing almost nine-year highs of 16.26. Mexico’s inflation data was mixed, though the emerging market currency tumbled more than 0.5%, as price action seems overextended. The USD/MXN trades at 16.40.
Mexico’s Consumer Price Index (CPI) was lower than estimated as the disinflation process continued. In the same tone, core CPI on a yearly and monthly basis decelerated, justifying the Bank of Mexico's (Banxico) decision to lower rates on March 21. However, not everything was good news for the central bank as the yearly CPI exceeded estimates.
Maria Marco, an analyst at Monex Europe, said, “Given that at the March meeting the entire Board of Governors devoted much of their efforts to stressing that the balance of risks to inflation remains skewed to the upside, today’s data confirms our view that Banxico didn’t embark on an uninterrupted sequence of rate cuts last month.”
That said, USD/MXN traders' focus shifts toward the next inflation report in the United States (US). Softer data could drive the USD/MXN toward the 16.00 psychological barrier. Otherwise, the pair could surpass the 16.50 figure with buyers eyeing 17.00.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.